In 2016 Georg Hesse was appointed CEO of HolidayCheck Group AG (ETR:HOC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Georg Hesse's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that HolidayCheck Group AG has a market cap of €144m, and reported total annual CEO compensation of €743k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €340k. When we examined a selection of companies with market caps ranging from €90m to €362m, we found the median CEO total compensation was €497k.
It would therefore appear that HolidayCheck Group AG pays Georg Hesse more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at HolidayCheck Group, below.
Is HolidayCheck Group AG Growing?
Over the last three years HolidayCheck Group AG has grown its earnings per share (EPS) by an average of 85% per year (using a line of best fit). Its revenue is up 5.6% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has HolidayCheck Group AG Been A Good Investment?
HolidayCheck Group AG has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at HolidayCheck Group AG with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling HolidayCheck Group shares (free trial).
Important note: HolidayCheck Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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